Landlords of embattled retail chain Blue Inc have revealed their doubts about the future of the company, according to Drapers.
The news comes after Blue Inc, which went through a pre-pack administration only a year ago, filed for a company voluntary arrangement (CVA) in hopes of reducing rents and shutting unprofitable stores.
Despite these restructuring plans, many landlords remained sceptical of the company’s future.
“The concept of a CVA for good retail businesses that are in financial difficulty makes sense, but I have lost count of how many times Blue Inc has been in difficulty,” one landlord told Drapers.
“When used properly CVAs can work but I don’t think this one will.”
Property director at shopping centre operator Ellandi, Mark Robinson, added: “The vast majority of property owners are resentful about the way CVAs are used as they target one form of creditor.
“It is unjust. That said, when a retailer is in trouble you have to support it. We’d like to see the business succeed.”
Blue Inc has stated that this move forms part of a wider restructuring and that it would ensure the financial stability of the company moving forward.
It is understood the retailer plans to close the shutters on 33 of its 127-store estate, and needs around £3 million in cash to invest in stock and debt repayments.
“In a challenging market it is vital that we ensure our operation runs as effectively and efficiently as possible as we drive the brand to continue to deliver great product, great service and great price,” Blue Inc managing director Peter Girt said.
”We believe this restructure will allow us to achieve this and protect the interests of our employees, creditors and suppliers.”